6. Which of the two methods of estimating uncollect- ibles provides for the most accurate...

6. Which of the two methods of estimating uncollect- ibles provides for the most accurate estimate of the current net realizable value of the receivables?

7. Neptune Company issued a note receivable to Sailfish Company. (a) Who is the payee? (b) What is the title of the account used by Sailfish Company in recording the note?

8. If a note provides for payment of principal of

$85,000 and interest at the rate of 6%, will the interest amount to $5,100? Explain.

Nov 09 2015 12:25 PM

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Tracy S
answered on November 25, 2015

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Hello and Welcome! You will find your questions and answers below. 6. Which of the two methods of estimating uncollect- ibles provides for the most accurate estimate of the current net realizable value of the receivables? The aging of receivables method (also known as the percentage of accounts receivable method) most accurately estimates the current net realizable value of the receivables. 7. Neptune Company issued a note receivable to Sailfish Company. (a) Who is the payee? (b) What is the title of the account used by Sailfish Company in recording the note? Neptune Company is...

he payee. Sailfish Company will use the notes payable account to record the note. 8. If a note provides for payment of principal of $85,000 and interest at the rate of 6%, will the interest amount to $5,100? Explain. The amount of interest will depend on the term of the note. For example, if the note only has a 6-month term, then the interest will only amount to $2,550 (85,000*.06*6/12).

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